Proposed Amendment to 1986 Internal Revenue Code Could Allow Americans to Pay Federal Taxes with Bitcoin
A potential game-changing amendment to the 1986 Internal Revenue Code is in the works and it could have a significant impact on the adoption of Bitcoin in the United States. US Congressman Matt Gaetz has put forward a proposal that would allow citizens to use Bitcoin (BTC) and other cryptocurrencies to fulfill their federal tax obligations.
Gaetz, known for his staunch belief in the potential of digital assets to revolutionize the financial landscape, is pushing for the inclusion of Bitcoin as an option for taxpayers. If passed, this measure would require an amendment to the 1986 Internal Revenue Code and also mandate the Department of the Treasury to establish a mechanism for the payment of taxes with Bitcoin.
The potential impact of this proposed law on the adoption of Bitcoin in the US cannot be understated. It would also prompt the Treasury to focus more on the implementation of digital assets. Gaetz, in presenting his Bitcoin law to the public, emphasized the inherent advantages of this move, highlighting its potential to foster innovation, enhance productivity, and offer Americans more flexibility in their financial transactions.
The recent stance of El Salvador towards Bitcoin may have influenced Gaetz’s proposal, as he recently met with President Nayib Bukele to discuss the matter. Additionally, Colorado is among the states that have started accepting Bitcoin as a form of payment for state taxes, with several Bitcoin-related bills awaiting approval from relevant authorities.
Given the recent volatility in the crypto market, any positive developments, such as the potential acceptance of Bitcoin for tax payments, could help boost investor confidence. In other crypto news today, Solana bulls are working to maintain upward momentum amidst platform upgrades.